Topline
First Horizon shares plummeted Thursday following an announcement it had mutually agreed to terminate its merger with TD Bank, after shares in the regional firm had fallen below its deal price and a prolonged regulatory approval process.
Pre-market shares at First Horizon fell over 40% following its failed merger with TD Bank.
Key Facts
First Horizon pre-market shares fell 40%—from $15 to below $9—since the merger was terminated as of 8:45 a.m. Thursday.
TD Bank said in a joint statement Thursday the merger was closed because it could not secure a “timetable for regulatory approvals”—though First Horizon shares have also fallen well below its $25-per-share price since the merger was announced in 2022.
In its agreement, TD Bank will pay First Horizon $200 million in cash and $25 million in reimbursement fees.
Crucial Quote
First Horizon CEO Bryan Jordan said the failed merger was “unfortunate and unexpected,” adding the bank will “continue on its growth path operating from a position of strength and stability.”
This is a developing story and will be updated.
Source: https://www.forbes.com/sites/tylerroush/2023/05/04/first-horizon-shares-fall-more-than-40-after-td-bank-merger-fails/